Massive PMS Output Signals New Era For Nigeria’s Downstream Sector
A Landmark Shift in Fuel Supply
NIGERIA’S downstream petroleum landscape is set for a major overhaul as the Dangote Petroleum Refinery prepares to supply up to 65 million litres of petrol daily to the domestic market.
Speaking in Lagos, Aliko Dangote, President of the Dangote Group, confirmed that a comprehensive offtake framework has been agreed with key marketers to guarantee consistent nationwide distribution.
With Nigeria’s daily petrol demand estimated at between 50 and 60 million litres, the refinery’s production capacity will comfortably meet domestic needs while generating a surplus of 15 to 20 million litres for export.
Regulatory Backing and National Coverage
The distribution arrangement has been endorsed by the Nigerian Midstream and Downstream Petroleum Regulatory Authority, ensuring regulatory alignment.
Major downstream operators participating in the framework include Nigerian National Petroleum Company Limited Retail, MRS Oil Nigeria Plc, 11 Plc, TotalEnergies Marketing Nigeria Plc, Ardova Plc, alongside other independent marketers.
The structured supply model is intended to address longstanding inefficiencies in Nigeria’s fuel distribution network, including hoarding, speculative pricing, and uneven supply patterns.
Economic and Strategic Implications
For years, Nigeria depended on fuel imports despite its crude oil wealth, leaving the economy vulnerable to foreign exchange volatility and international shipping constraints.
The ramp-up in local refining capacity is widely viewed as a turning point, with potential ripple effects across the economy. Analysts note that consistent domestic supply could stabilise fuel prices, reduce pressure on foreign reserves, and improve overall energy security.
The export of surplus volumes may also position Nigeria as a regional supplier of refined products, strengthening its influence within West Africa’s energy market.
As the refinery scales up operations, stakeholders will closely watch how effectively the new distribution framework eliminates the supply instability that has long characterised Nigeria’s downstream sector.
